⇒ U.S. stock indexes closed at all-time highs, extending their record run as consumer-spending data reinforced perceptions that the U.S. economic recovery is poised to accelerate in 2014. The SandP 500 closed 9.30 points, or 0.5%, to 1,827.99, near its intra-day high and record close. The Dow Jones Industrial Average advanced 73.47 points, or 0.5%, to 16,294.61, marking its 48th record high this year. The Nasdaq Composite jumped 44.16 points, or 1.1%, to 4,148.90 – Source: Marketwatch

⇒ Asian markets took cheer on Tuesday after Wall Street rang up more records and upbeat U.S. spending data burnished the outlook for the global economy, with Japan’s Nikkei hitting a 2013 high after Tokyo markets opened after a holiday. Tokyo’s Nikkei sped to a six-year peak, adding about 0.8 percent and topping the 16,000-mark, driven by buying from long-only investors after Wall Street marched upwards. The Australian market added about 0.6 percent, while MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent – Source: Reuters

⇒ The Federal Reserve on Monday proposed long-awaited restrictions on its role as lender of last resort role during the next financial crisis. During the 2008 financial crisis, the Fed controversially provided low cost loans to domestic banks, foreign banks, and broker-dealers. A study by Bloomberg News estimated that the Fed lent as much as $1.2 trillion in public money to banks and other companies from August 2007 through April 2010 – Source: Marketwatch

⇒ The dollar rose toward a five-year high against the yen as traders bet on a divergence in monetary policy with the U.S. Federal Reserve paring stimulus while the Bank of Japan continues unprecedented easing. The dollar gained 0.3 percent to 104.37 yen as of 12:31 p.m. in Tokyo from yesterday. It reached 104.64 yen on Dec. 20, the most since October 2008 – Source: Bloomberg

⇒ The U.S. dollar steadied on Tuesday, having given back a bit of its recent hefty gains as upbeat U.S. consumption data fostered hopes of solid U.S. recovery and boosted U.S. bond yields. Although the market lacked conviction with many investors having already closed their books for the year, traders expect the prospects of eventual rate hike by the Federal Reserve to underpin the dollar. The euro bought $1.3683, down slightly from late U.S. levels but still holding off a two-week low of $1.3625 plumbed Friday. The dollar index gained slightly to stand at 80.530 , edging closer to a two-week high of 80.827 hit last week – Source: Reuters

⇒ Gold traded little changed below $1,200 an ounce as investor holdings retreated and U.S. equities climbed to a record amid signs of an improving economy. Bullion for immediate delivery was at $1,199.10 an ounce at 11:23 a.m. in Singapore from $1,198.83 yesterday when prices dropped 0.4 percent. The price closed at $1,188.68 on Dec. 19, the lowest since Aug. 3, 2010 – Source: Bloomberg

⇒ A gauge of consumer sentiment rose this month to the highest level since July, led by brighter views on current conditions, according to data released Monday. The final December reading of the University of Michigan/Thomson Reuters consumer-sentiment index hit 82.5, unchanged from a preliminary reading and up from a final November level of 75.1. Economists polled by MarketWatch had expected the final December gauge to hit 82.9, thanks to higher stock prices, as well as Washington’s progress on a budget deal, among other factors – Source: Marketwatch

⇒ Consumer spending outpaced income growth in November, the Commerce Department reported Monday. Consumer spending rose 0.5% in November. Personal income rose 0.2%. Wall Street economists had expected a 0.5% gain for spending and an 0.4% gain for income. The savings rate fell to 4.2% from 4.5% in October. Excluding inflation, real disposable incomes rose 0.1% in November after falling 0.2% in October – Source: Marketwatch

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